An Investment Policy Statement (IPS) provides a valuable blueprint for investment-related decisions and establishes well-defined investment policies, guidelines and objectives for plan sponsors. The IPS serves as a framework for evaluating your retirement plan’s performance, exploring new opportunities and enhancing the portfolio. It also offers guidance for managing expectations and setting limitations for all parties holding investment responsibility.
Moneta Group develops an IPS for plan sponsors that engage us as an ERISA 3(38) discretionary manager. It addresses and clearly defines:
- Delegation of responsibilities
- Selection and monitoring of investment managers
- Investment philosophy and objectives
- Performance measurement objectives and guidelins
- Spending rate policy
- Asset allocation
- Permissible investments
- Rebalancing discipline
Investment Policy Statements evolve over time in response to changing trends in financial markets and new investment opportunities.